Bitcoin is often called "digital gold" due to its store-of-value properties. It enables fast, borderless transactions and serves as a hedge against inflation. Major companies and institutions now accept or invest in BTC, boosting its adoption. Bitcoin (BTC) is a decentralized digital currency, often described as a cryptocurrency, that operates without the need for a central bank or single administrator. Instead, it relies on peer-to-peer technology and cryptography to validate and record transactions on a public, distributed ledger known as the blockchain.
Key Features and Concepts:
* Decentralization: Unlike traditional currencies issued by governments, Bitcoin's control is distributed across a network of users. This makes it resistant to censorship and single points of failure.
* Blockchain Technology: The backbone of Bitcoin is the blockchain, a transparent and immutable record of all Bitcoin transactions. Each transaction is grouped into a "block," which is cryptographically linked to the previous block, forming a chain. This ensures the security and integrity of the currency.
* Mining: New Bitcoins are created through a process called "mining." Miners use specialized computers to solve complex mathematical problems, and in return, they are rewarded with newly minted Bitcoins and transaction fees. This process also serves to validate and secure the network.